Government to introduce debt ceiling to strengthen fiscal stability, says Ato Forson
Speaking at a high-level meeting with 22 managing directors of commercial banks on Wednesday (20 March), Dr Forson said the measure is one of a number of broad efforts to enhance fiscal discipline and restore macroeconomic stability
The Minister for Finance, Cassiel Ato Forson, has announced that the government will present a fiscal responsibility rule to Parliament, establishing a debt ceiling that the Ministry of Finance cannot exceed.
Speaking at a high-level meeting with 22 managing directors of commercial banks on Wednesday (20 March), Dr Forson said the measure is one of a raft of efforts to enhance fiscal discipline and restore macroeconomic stability.
Discussions at the meeting centred on economic recovery, fiscal consolidation and financial sector stability.
“We are making massive investment cuts and resetting goods and services expenditure to 2023 levels. Our target is clear: achieve a primary surplus of 1.5% as we work to consolidate our gains and rebuild confidence.
“As part of our commitment to fiscal discipline, we will be submitting to Parliament a fiscal responsibility rule – a debt ceiling that the Ministry of Finance cannot exceed,” he said in a post on Facebook.
Domestic debt obligations
On the Domestic Debt Exchange Programme (DDEP), Forson offered his assurance that the government remains committed to honouring its obligations.
“We have no plans to default. All outstanding holdouts have been settled, and we have built sufficient buffers to fully meet our DDEP commitments this year,” he reaffirmed.
Rely less on treasury bills
The Finance Minister also outlined steps to reduce dependence on Treasury bills and improve co-ordination between fiscal and monetary policies.
“We do not intend to default,” he said.
“All outstanding holdouts have been paid, and we have built enough buffers to fully meet our DDEP obligations this year.”
Banking’s role in economic recovery
Dr Forson acknowledged the banking sector’s pivotal role in Ghana’s economic transformation and reiterated the government’s commitment to working closely with financial institutions.
The meeting was attended by the Governor of the Bank of Ghana, Dr Johnson Asiama, who will chair his first Monetary Policy Committee meeting next week. His presence, along with his deputy, was seen as a sign of stronger co-ordination of fiscal with monetary policy.
Kwamina Asomaning, the president of the Ghana Association of Banks (GAB) and chief executive officer of Stanbic Bank Ghana, praised the government’s 2025 Budget, citing its positive reception in the financial markets.
He also pledged the banking sector’s support for financial inclusion and capital market growth.
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